SB534 Alabama 2010 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsors

Trip PittmanRusty GloverVivian Davis Figures

Session

Regular Session 2010

Title

Insurance Department, required to collect information from insurance companies on homeowners insurance policies and premiums by counties and Zip Code and post aggregate information on website, penalties for insurance companies not in compliance, Department of Insurance Transparency Act

Summary

SB534 would create the Department of Insurance Transparency Act, requiring insurers to report homeowners policy data by county and ZIP code and publish aggregate statistics and actuarial models online, with penalties for noncompliance.

What This Bill Does

Insurance companies operating in Alabama must annually report to the Department of Insurance the number of homeowners' policies, the total premiums collected, and the amount of claims (pending or paid), organized by county and ZIP code. The Department must compile a statewide database and post on its website the aggregate totals by county/ZIP for premiums, claims, and policies, plus a perils breakdown and a description of the actuarial model used to set premiums. Data from 1990 onward must be posted, with annual updates and an initial public posting by January 15, 2011; penalties include possible daily fines and suspension of new policy sales for noncompliance.

Who It Affects

• Insurance companies transacting business in Alabama: must submit annual data by October 1 and could face fines of up to $2,500 per day and suspension of new policy sales if they fail to comply.
• Alabama residents and consumers: will gain access to public, county- and ZIP code–level data on homeowners' policies, premiums, and claims, as well as information about the actuarial methods used to determine premiums.

Key Provisions

• Establishes the Department of Insurance Transparency Act and requires insurers to report homeowners policy data to the Alabama Department of Insurance.
• Annual reporting by October 1 of total homeowners’ claims (pending or paid), number of policies, and premiums by county and ZIP code.
• The Department must compile a statewide database and post aggregate data by county/ZIP on its website, including premiums, claims, and policy counts, with a perils breakdown (fire, hail, tornado, named storms, and flood).
• The Department must publish a comprehensive description of the actuarial model used to calculate premiums, by ZIP code or county, and provide relevant data used in the calculations.
• Data from 1990 onward must be collected and posted as annual aggregates by year and by county/ZIP on the Department’s website.
• Penalties include an option to extend the Oct 1 deadline (up to 90 days) with a $2,500 per day fine for continued noncompliance; funds go to the State General Fund; continued noncompliance after extension can result in suspension from selling new policies until compliant.
• The act becomes effective on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance Department